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Workday (WDAY)

- NYSE
  • Wed, Mar. 4, 3:01 PM
    • Today's notable tech gainers include Chinese online classifieds leader 58.com (WUBA +5.9%), CDN owner Limelight (LLNW +6.5%), account-protection software provider CyberArk (CYBR +3.2%), flash storage array vendor Violin Memory (VMEM +3.8%), online video ad platform Tremor Video (TRMR +4%), and Chinese mobile game publisher Sky-mobi (MOBI +11.9%).
    • Notable decliners include cloud HR/financials software leader Workday (WDAY -5.8%), systems management software vendor SolarWinds (SWI -3.8%), chip packaging IP firm Tessera (TSRA -4.3%), security hardware/software provider KEYW Holding (KEYW -3.7%), and Chinese online real estate play E-House (EJ -4%). The Nasdaq is down 0.2%.
    • Sky-mobi has flown higher since Rosenblatt Securities pounded the table for the company last week. Workday has fallen sharply since last week's FQ4 revenue beat. E-House has gradually declined this week since 58.com announced the purchase of Chinese real estate site Anjuke.
    • Previously covered: Neustar, AeroVironment, Alibaba, SanDisk, Autohome/Bitauto, ReneSola, Trina, Ambarella/GoPro, Bazaarvoice, Veeva
    | 2 Comments
  • Fri, Feb. 27, 2:59 PM
    • Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
    • Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
    • Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
    • Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
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  • Wed, Feb. 25, 5:09 PM
    • In addition to beating FQ4 revenue estimates (while posting in-line EPS), Workday (NYSE:WDAY) is guiding for FQ1 revenue of $242M-$245M, above a $239.5M consensus. With forex a headwind and the company prone to guiding conservatively, FY16 (ends Jan. '16) guidance is for revenue of $1.115B-$1.14B (+42%-45% Y/Y) vs. a $1.13B consensus.
    • The cloud HR/financials software vendor's unearned revenue balance rose 53% Y/Y in FQ4 to $632.7M. That helped it post free cash flow of $10.6M in spite of an $11.5M net loss.
    • Subscription revenue rose 64% Y/Y to $181.9M, and professional services revenue 42% to $44.4M. GAAP costs/expenses rose 46% Y/Y to $276.7M - sales/marketing spend totaled $88.5M, and R&D $89M.
    • WDAY +1.9% AH to $95.75. Fellow cloud software giant Salesforce is soaring following its FQ4 report.
    • FQ4 results, PR
    | 3 Comments
  • Wed, Jan. 14, 1:20 PM
    • A slew of tech companies have posted steep losses on a day the Nasdaq is down 1%.
    • Major decliners include Pandora (P -5%), LED giant Cree (CREE -5.9%), cloud HR software leader Workday (WDAY -4.1%), chipmakers Ambarella (AMBA -5.3%), Pixelworks (PXLW -3.7%), Audience (ADNC -3.6%), Spansion (CODE -4.4%), and Cypress (CY -3.9%) (the last two are merger partners), OLED materials/IP provider Universal Display (OLED -4.2%), industrial automation tech provider Echelon (ELON -4.8%), and P2P lending giant/recent IPO LendingClub (LC -4.8%).
    • Possibly affecting OLED: LG Display (NYSE:LPL) has been ordered to halt operations at an OLED TV panel production line following a gas leak that killed two workers.
    • Cree and Pandora aren't far removed from their 52-week lows; the former reports on Jan. 20, and the latter on Feb. 5. LendingClub, whose selloff follows a volatile Tuesday, could be affected by a neutral coverage launch from Susquehanna.
    | 4 Comments
  • Dec. 18, 2014, 2:04 PM
    • With the help of stronger-than-expected hardware sales, Oracle (ORCL +9.2%) beat FQ2 estimates in spite of a 400 bps forex headwind (twice what was originally expected). FQ3 guidance was conservative after taking forex pressures into account.
    • The numbers have been good enough for Oracle to surge to new highs and receive a slew of target hikes, and to lead many enterprise tech names to outperform amid a big market rally. The Nasdaq is up 1.9%.
    • Microsoft (MSFT +3.2%), Cisco (CSCO +2.3%), EMC (EMC +3.7%), VMware (VMW +5.1%), and beaten-down IBM (IBM +2.8%) are among the enterprise tech names outperforming today. Others: SPLK +4.6%. CA +3.5%. RHT +3.4%. VRNS +6.3%. PCTY +5.8%. JIVE +4.6%. VMEM +5.2%. SAAS +4.7%. BRCD +3.8%.
    • Oracle's healthy cloud software numbers are drawing attention: While traditional software license revenue fell 4% Y/Y, its SaaS/PaaS revenue rose 41%. SaaS/PaaS bookings totaled $170M, and are expected to be "well over" $1B in FY16 (ends May '16). Fusion cloud app bookings rose over 100%.
    • On the CC (transcript), Oracle performed its customary trash-talking of cloud app rivals. "We are clearly growing faster than Salesforce (CRM +4%) and were more than three times the size of Workday (WDAY +3.2%)." Both firms are posting solid gains.
    • Oracle's numbers come as Bloomberg reports the Chinese government is looking to "purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020." IBM, Cisco, and other U.S. firms have already seen their Chinese sales fall sharply following last year's NSA spying uproar.
    | 4 Comments
  • Nov. 25, 2014, 2:51 PM
    • "While investors’ first reaction was negative, we believe the initial FY16 'guidance' is very preliminary and conservative. The initial mgmt. view for the current FY15 called for rev growth of ~50%, and we are now modelling 68%," writes UBS, reiterating a Buy on Workday (NYSE:WDAY) post-earnings.
    • The firm also thinks Workday's FQ4 outlook is conservative, and is forecasting FQ4 revenue $2M above the high end of Workday's guidance range. "FY16 looks to be a strong year for Fin’l Mgmt pdts, helped by Insight analytic apps [becoming generally available]. Europe has been a bit slow due to (1) entrenched competitors and (2) sales org. changes early in the yr, but should improve next yr."
    • Canaccord (Buy) also isn't worried about the FY16 commentary ... for now. "If you dig into the numbers, the fact that WDAY intends to run its OpEx based on 40% revenue growth seems more like a conservative way to manage expectations than a statement of concern about the pace of business."
    • Summit Research (Hold) is more cautious, noting Y/Y deferred revenue growth slowed to 8.3% in FQ3 from FQ2's 15.7% and FQ1's 19.7%. "We would expect deferred growth to at least match or exceed revenue growth in a SaaS business model like Workday’s."
    • Wedbush (Outperform) thinks large deal activity was "more muted" in FQ3. But it's "optimistic about the [FQ4] contracting and large deal outlook, as our checks indicate that WDAY integrators are heavily loaded with projects and prospects, and Y/Y billings comparisons don't look overly difficult."
    • Several targets have been cut, but that might have as much to do with Workday's YTD performance as anything else.
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  • Nov. 25, 2014, 9:15 AM
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  • Nov. 24, 2014, 5:43 PM
    • Top gainers, as of 5:15 p.m.: GAZ +10.5%. VMEM +7.8%. CRK +5.6%. NUAN +3.5%. XCO +3.3%.
    • Top losers, as of 5:15 p.m.: WDAY -9.7%. GOMO -8.6%. ANFI -7.5%. LL -4.6%. PANW -3.7%.
    | Comment!
  • Nov. 24, 2014, 5:23 PM
    • On its FQ3 CC, Workday (NYSE:WDAY) says it isn't providing FY16 (ends Jan. '16) guidance for now, but adds it isn't assuming it will see 40%+ growth. The consensus is for 47.2% growth.
    • Shares have added to the AH losses they saw after the cloud HR leader provided in-line FQ4 guidance to go with an FQ3 beat.
    | Comment!
  • Nov. 24, 2014, 4:32 PM
    • Workday (NYSE:WDAY) is guiding for FQ4 revenue of $219M-$222M, +54%-56% Y/Y and in-line with a $220.5M consensus. That isn't being received well, given Workday's history of providing above-consensus guidance.
    • Subscription revenue rose 75% Y/Y in FQ3 to $164.4M, exceeding total revenue growth of 68%. Workday's unearned revenue balance rose 44% Y/Y to $508.1M.
    • Though Workday had a net loss of $5.3M, unearned revenue growth led free cash flow to total $13.3M. GAAP costs/expenses rose 58% Y/Y to $266.5M - sales/marketing spend amounted to $80.7M, R&D $85.3M, and G&A $28.8M.
    • FQ3 results, PR
    | Comment!
  • Sep. 22, 2014, 1:45 PM
    • High-beta tech stocks are selling off hard as the Nasdaq registers a 1.3% decline. The selling is broad-based, with Internet, solar, and enterprise tech stocks all well-represented among the ranks of major decliners.
    • Major Internet decliners: BIDU -4.7%. ANGI -7%. YELP -5.9%. AWAY -5.1%. CHGG -5.9%. GRUB -5.8%. P -5.2%. Z -4.6%. TRLA -4.8%. ATHM -7.9%. BITA -7%. DANG -5.9%. WB -5.3%.
    • Solar: FSLR -4.5%. SCTY -7.5%. SPWR -4.5%. DQ -7.6%. JKS -5.5%. ASTI -6.3%. ENPH -5.5%. CSIQ -4.8%.
    • Enterprise: WDAY -5.4%. GIMO -6.7%. VMEM -7.7%. IMPV -4.8%. MKTO -4.9%. SPRT -5.1%. CSOD -5.5%.
    • Others: HIMX -4.6%. SIGM -5.6%. WATT -9.7%. CYNI -5.3%. ADNC -5.7%. PXLW -5%. SWIR -5.8%. MITK -6%. OCLR -6%.
    | 14 Comments
  • Aug. 29, 2014, 1:00 PM
    • Low expectations and a high short interest (11.9M shares as of Aug. 15) are proving a good mix for Veeva (VEEV +18.1%) following its FQ2 beat and guidance hike. Several firms have raised their targets.
    • Workday (WDAY +5.5%), which sold off yesterday (and took peers down with it) following its FQ2 report, is following Veeva higher. As are Veeva partner Salesforce (CRM +2.1%) and several other cloud software names. NOW +2.9%. CTCT +3.4%. JIVE +2.5%. CSOD +2%. ULTI +1.9%. MKTO +1.9%.
    • "We like [Veeva's] momentum with new products, the pace of customer deployments, and view the second-half guidance as likely conservative," says Deutsche (Buy).
    • Pac Crest (Outperform) likes the fact Veeva's billings and subscription revenue each rose over 60% Y/Y, and that its large deal activity also grew. It sees a $5B addressable market for life sciences CRM/content management software.
    | 2 Comments
  • Aug. 28, 2014, 2:45 PM
    • Workday (WDAY -4.7%) has received several target hikes after beating FQ2 estimates and upping its FY15 (ends Jan. '15) guidance. But there have also been some cautious notes focused on cloud HR/financial software giant's valuation.
    • Citi observes Workday trades at 15x 2015E sales, and says it has trouble seeing upside catalysts at current levels. Goldman points out Workday is trading at 11x estimated enterprise value/billings even if its upside scenario plays out.
    • Cantor (target raised to $121) sees several reasons to be bullish. Among them: The ramp of Workday's recently-launched recruiting product; the pending launch of Workday Student; an enterprise software upgrade cycle; strong international growth (echoes of Salesforce); and expected announcements at the November Workday Rising conference.
    • Wedbush (target raised to $106) expects new big data/analytics products to be shown off at the conference. It also sees room for a fresh guidance hike in 3 months, though it thinks it might be smaller than yesterday's hike.
    • Workday used its CC (transcript) to hike its FY15 billings guidance by $50M to $940M-$960M (above revenue guidance of $760M-$770M). FQ3 billings guidance is at $225M-$230M (above revenue guidance of $200M-$205M).
    • Salesforce (CRM -2%) and several other cloud software names are following Workday lower. CSOD -3.3%. MKTO -3.3%. DWRE -2.2%. JIVE -1.6%. N -1.4%.
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  • Aug. 27, 2014, 4:16 PM
    • Workday (NYSE:WDAY) expects FQ3 revenue of $200M-$205M, above a $195.6M consensus. FY15 (ends Jan. '15) revenue guidance is at $760M-$770M, up from a prior $730M-$750M and above a $748.7M consensus.
    • The unearned revenue balance rose 4% Q/Q and 48% Y/Y in FQ2 to $481.5M; Y/Y growth was at 54% in FQ1. Free cash flow was -$37.4M, thanks in part to capex of $28.4M.
    • Sales/marketing spend +68% Y/Y to $70.9M; R&D +60% to $59.9M; G&A +42% to $14.6M. The figures compare with revenue growth of 74%.
    • Subscription revenue rose 77% Y/Y to $143.7M, and professional services 63% to $43.1M.
    • FQ2 results, PR
    | 2 Comments
  • Aug. 27, 2014, 4:06 PM
    • Workday (NYSE:WDAY): Q2 EPS of -$0.11 beats by $0.03.
    • Revenue of $186.78M (+73.7% Y/Y) beats by $9.47M.
    • Shares +2.69% AH.
    • Press Release
    | Comment!
  • Jul. 30, 2014, 3:58 PM
    • Ultimate Software (ULTI +7.4%) beat Q2 estimates on the back of a 26% Y/Y increase in recurring revenue (84% of total revenue). The cloud HR software vendor also disclosed on its CC (transcript) it added three new enterprise clients with 10K or more employees; the largest has 40K.
    • Full-year guidance for 23% revenue growth (25% recurring growth) has been reiterated. Q3 guidance for revenue of $127M is roughly in-line with a $127.3M consensus.
    • A number of cloud software peers have also rallied. Cloud HR/talent management peers Workday (WDAY +6.5%) and Cornerstone OnDemand (CSOD +5.1%) are among the biggest gainers, but others are also doing quite well. CRM +2.7%. NOW +4.7%. LPSN +5.3%. MKTO +4.1%. CNQR +4.8%. JIVE +3.6%. N +4.2%.
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Company Description
Workday Inc is a provider of enterprise cloud-based applications for human capital management, payroll, financial management, time tracking, procurement and employee expense management.
Sector: Technology
Country: United States